🦍 OBBB Hack: Pay Your Family in Tips — and Keep the First $25K Tax-Free
July 2025
You ever see a gorilla bussing tables? Neither have we.
But your family could be picking up big tax-free tips this year — and the IRS is actually encouraging it.
🍔 The Big News: The $25K Tip Deduction
Thanks to the One Big Beautiful Bill (OBBB), you can now hire your spouse or teenage child in your service business, put them in a tipped role, and let them keep up to $25,000 in tip income tax-free at the federal level.
Yes, really. (And no, you can’t tip the gorillas — we asked.)
💡 How to Do It (The IRS-Approved Way)
1. Hire Your Spouse — Officially
Put them on the payroll, W-2 style
Have them do real, customer-facing work (serving, hosting, salon help)
Report tips properly (W-2 or Form 4137)
Result: They claim the new tip deduction. First $25K in tips = tax-free!
2. Put Your Teen to Work (For Real)
Many states let family businesses employ minors (age 16–17)
Roles: food runner, host, salon assistant, mobile customer support
Pay and report tips just like any other employee
Result: Your kid gets real world (and tax-free) income, you get the deduction, everyone wins.
3. Self-Employed or Mobile Pro?
Track tips separately in your books
Show net business income
Report all tips (yes, even cash) — Hedgi makes it easy
💵 Don’t Forget: The Expanded Employer Tip Credit
OBBB now lets salon, spa, and beauty business owners claim a federal tax credit for the employer share of Social Security/Medicare taxes on employee tips
Previously, only food/beverage businesses could do this. Now it’s way bigger.
🦔 Why Hedgi Makes This Easy
Hedgi tracks all payroll, tips, and credits in one place
Flags when a family member hits the $25K tip limit
Alerts you about employer tip credits you may have missed
Keeps your books IRS- and audit-ready (and ready for your next family meeting)
⚠️ Timing & Rules
This strategy is for tips earned 2025–2028
Deduction phases out at $150K income ($300K if filing jointly)
Tips must be legit, tracked, and reported — not just cash under the table
🎯 Bottom Line
This is the best reason yet to put your family to work — officially.
Get the deduction. Keep the tips. Let Hedgi (and maybe a gorilla) do the tracking.
Ready for more hidden OBBB wins?
Sign up, get on the waitlist, and let’s make tax law work for your family this year.